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CNN Live At Daybreak

Presidential Candidates Plunge into Duel Over Domestic Issues; U.S. and Iraqi Forces Launch More Air and Ground Raids in Falluja

Aired October 15, 2004 - 05:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, U.S. and Iraqi forces launch more air and ground raids on the volatile city of Falluja. They've also set up vehicle checkpoints in and around the insurgent stronghold. U.S. military officials say the operation is to lay the groundwork for an eventual offensive there.

Eastern nations have come up with a plan of incentives and threats for dealing with Iran's nuclear program. Senior officials from the Group of Eight industrial nations will present the proposal today at the U.S. State Department.

Today, Muslims begin their most sacred time of year, the holy month of Ramadan. It's a time of fasting and prayer. And many fear it may also mark a time of increased violence.

Florida's Palm Beach County plans to test its electronic voting machines today. An election official says Tuesday's dry run was postponed because a computer server crashed -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

COSTELLO: Good morning.

MYERS: Did you wear a jacket this morning?

COSTELLO: It's cold outside.

MYERS: Colder in Atlanta than it is in D.C., New York and Boston.

COSTELLO: What's happening?

MYERS: Cold air all the way down to New Orleans.

(WEATHER REPORT)

COSTELLO: Eighteen days until election day in America and the presidential candidates plunge into a duel over domestic issues. On the campaign trail today, Democrat John Kerry begins his day in the battleground state of Iowa and then he heads to Wisconsin, with stops in three cities. He wraps up the day late tonight in Dayton, Ohio. The Democratic presidential candidate is also talking about jobs, health care and the economy. He's hoping to connect with the middle class voters.

More now from CNN's Candy Crowley.

(BEGIN VIDEO TAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): Las Vegas, and all those jabs from the president got John Kerry thinking about Muhammad Ali.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: George Foreman threw punch after punch. And Ali kind of stepped back and said to Foreman during this, to George Foreman, he said, "George, is that all you've got?"

CROWLEY: No knockout punches in the three debates, but the Kerry campaign believes he won all of them on points, though there are questions on that one point about sexual orientation.

KERRY: I think if you were to talk to Dick Cheney's daughter, who is a lesbian, she would tell you that she's being who she was.

CROWLEY: Dick and Lynne Cheney, who rarely talk publicly about their daughter's sexuality, called Kerry's words "out of line, a cheap and tawdry political trick." Something stung because Kerry put out a written statement explaining he was trying to say something positive about how families deal with the issue.

Elizabeth Edwards may not have helped when she weighed in.

ELIZABETH EDWARDS, JOHN EDWARDS' WIFE: It makes me really sad that that's Lynne's response. I think that it indicates a certain degree of shame with respect to her daughter's sexual preferences that I'm certain makes her daughter uncomfortable. And that makes me very sad on a personal level.

CROWLEY: No word from the low key Mary Cheney on how she actually feels.

Meanwhile, back on the trail, John Kerry was at an AARP meeting talking to seniors, people who voted before voting was cool, looking for a knockout punch as the bell for the final round sounds.

KERRY: And so I say to you, Mr. President, after four years of lost jobs, after four years of families losing health coverage, after four years of falling incomes, is that all you've got? After four years of rising gas prices, rising health care costs and squeezed families, is that all you've got?

CROWLEY: The campaign belongs to the nimble now. Kerry's strategists will meet over the weekend to plot the day by day game of political chess, where to send the candidate and where to spend the money. (on camera): And while the candidate's itinerary may change, while they may take money out of one state to put into another, the target remains very stable. As one aide put it, "For the next 18 days, this is all about the great middle class."

Candy Crowley, CNN, Des Moines.

(END VIDEO TAPE)

COSTELLO: And those comments from the Kerry campaign about Dick Cheney's lesbian daughter came up during a town hall meeting on CNN's "PAULA ZAHN NOW" last night. Mary Cheney's sister Liz lashed out at Elizabeth Edwards' statement suggesting the Cheneys were ashamed of their daughter's sexuality.

(BEGIN VIDEO CLIP)

LIZ CHENEY, DICK CHENEY'S DAUGHTER: It has nothing to do with, you know, shame. And I think Mrs. Edwards is also out of line. Mary is one of my heroes and it has nothing to do with being ashamed of Mary. The issue is whether or not Senator Kerry or Senator Edwards, who did the same thing, frankly, in the debate with my father, have the right to exploit her, to bring her up in a situation in which they're clearly trying to make some kind of political point or some kind of political gain. And I think it's actually unprecedented in the history of American presidential politics that you would see that happen.

(END VIDEO CLIP)

COSTELLO: Kerry supporters make note that Mary Cheney has been public about her sexuality and Dick Cheney himself has discussed it openly on the campaign trail.

Now on the road with President Bush, he wakes up in Jacksonville, Oregon this morning and then he's off for a rally in Cedar Rapids, Iowa. That'll happen this afternoon and he'll have another rally in Oshkosh, Wisconsin later tonight. President Bush says the campaign has entered what he calls a sprint to the finish and he's using it to play up his leadership abilities and also to paint Senator Kerry as too liberal to lead.

CNN's John King is traveling with the president.

(BEGIN VIDEO TAPE)

UNIDENTIFIED FEMALE: Ladies and gentlemen, the president of the United States.

JOHN KING, CNN CORRESPONDENT (voice-over): In Nevada, a rousing beginning of the end game. Likability and trust key themes for the president's closing appeal to a divided electorate.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: They know my blunt way of speaking. I get that from mom. They know I sometimes mangle the English language. I get that from dad. Americans also know I tell you exactly what I'm going to do and I keep my word.

KING: Stressing leadership will be another constant in the 19 day sprint. The Bush campaign highlighted Senator Kerry's wait and see approach when asked about Social Security reform in the final debate, suggesting the Democrat lacks the skills and the courage to confront tough issues.

BUSH: The senator's record is 20 years of out of the mainstream votes with -- without many significant reforms or results.

KING: Optimism can matter in a close race. This rare visit with reporters on Air Force One, Senator John McCain in tow, orchestrated to express nonchalance about all this talk of Kerry momentum and a debate series sweep.

BUSH: I feel great about where we are. There's a lot of enthusiasm for my candidacy.

KING: Yet the Bush campaign chairman acknowledged this reality -- the president was in better shape heading into the debates than he is coming out, making a good start to the final push all the more urgent.

SCOTT REED, REPUBLICAN STRATEGIST: And right now the campaign is all about momentum. It looks like the Bush campaign is going to need to get their momentum on the stump as he travels.

KING: Difficult targeting decisions now loom. Two stops in Nevada Thursday. Mr. Bush won last time, but the state leans a bit toward Kerry now.

BUSH: And I want your help.

KING: Then on to Oregon. The Bush campaign has invested heavily to organize here, yet again Senator Kerry now narrowly leads.

REED: It will probably be the last time they'll be heading back out there. They're going to be more focused on the Ohio, Pennsylvania, Florida access and the Midwest states.

KING (on camera): In another example of the electoral college chess under way, the White House says Mr. Bush will now campaign Monday in New Jersey. If nothing else, the Republicans want the Democrats to work harder there. But as of now, no plans for an expensive New York City media buy to contest New Jersey. The Bush- Cheney campaign well aware that every dollar spent in a long shot is a dollar not available to spend in a battleground.

John King, CNN, Central Point, Oregon.

(END VIDEO TAPE)

COSTELLO: Swanky music there, wasn't it? A special cable TV airing of the anti-Bush film "Fahrenheit 911" has now been canceled. In demand Pay-Per-View decided against the airing, which was scheduled for the day before elections. Director Michael Moore says he's now exploring possible legal action against the company.

In the meantime, one member of the Bush team has some harsh words for the controversial director.

Listen closely to this description of Moore.

(BEGIN VIDEO CLIP)

GEORGE BUSH, FORMER PRESIDENT OF THE UNITED STATES:

A total ass. A slime ball. And outrageous in his lies about my family. When I saw him sitting at the Democratic convention with Jimmy Carter and then on the thing with Ron Reagan, I said what in hell, what depths will they go to to dishonor the truth?

(END VIDEO CLIP)

COSTELLO: "Fahrenheit 911" was released on video and DVD last week and I don't think President Bush, Sr. will be watching it.

Another movie with political overtones opens today. It's "Team America: World Police," conceived by the makers of "South Park," it features a team of puppet police fighting terrorism. It's a political parody of the war on terror, which is no laughing matter, I know, but the movie has already caused controversy. Example, the creators say get out the vote campaigns like rapper Sean P. Diddy Combs Vote Or Die campaign, well, they're bogus because they urge people to vote and not be informed.

Actor Sean Penn is taking the comments to heart. Penn says that way of thinking will lead to the "mutilation and exploitation of innocent people." But the film's creators say anyone influenced by their film or by Michael Moore are stupid and they shouldn't be voting anyway.

So, the question this morning -- we were intrigued by that -- the question this morning, is it really the American way to vote when you don't have a clue as to what you're voting for? So the e-mail Question of the Day -- are potential voters informed about the issues? And if they're not, should they cast a ballot? Send us your thoughts. Daybreak@cnn.com. That's daybreak@cnn.com.

A major air and ground assault in Falluja overnight. U.S. Marines and Iraqi forces may be laying the groundwork for an offensive to retake the city from insurgents.

Details from the Pentagon and our senior correspondent Jamie McIntyre.

(BEGIN VIDEO TAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): The ground assault was preceded by another round of punishing air strikes aimed at targets in Fallujah believed to be associated with the terrorist network of Abu Musab Zarqawi. Among the targets, safe houses, illegal checkpoints and weapons storage areas. Then, after nightfall, hundreds of U.S. Marines, Army soldiers and Iraqi special forces moved against other objectives in and around the city, according to a Marine with one of the units.

1ST LT. LYLE GILBERT, 1ST MARINE EXPEDITIONARY UNIT: The troops crossed the line of departure. We had artillery fire -- clipped fire going out. Aircraft have been moving through the area all day. Helicopters providing transport. It's been a pretty uncomfortable time. We have two battalions out there in maneuver right now dealing with the anti-Iraqi forces.

MCINTYRE: Pentagon officials say this is not the final battle for control of Fallujah, which has been under the control of insurgents for months. Sources say the objectives were set after intelligence indicated that terrorists in Fallujah were planning to step up attacks against U.S. forces and the Iraqi people during the Muslim holy month of Ramadan.

GILBERT: It's a significant effort. And when all is said and done, it's going to be a lot less of the anti-Iraqi forces than we're dealing with right now.

MCINTYRE: The U.S. insists the new Iraqi government is calling the shots. Thursday a delegation from Fallujah broke off peace talks with the government over an ultimatum issued by Iraqi Prime Minister Allawi that Zarqawi be handed over.

GILBERT: We've been looking forward to this for a long time.

MCINTYRE: The Marines have been anxious to retake Fallujah ever since their April offensive was aborted in favor of a political settlement that ultimately failed to restore security and left Fallujah a base of operations for the insurgents.

(on camera): While the Pentagon says this is not the big offensive, it could be the beginning of the end, according to U.S. military officials, who say that depends on how much resistance the insurgents can muster. Part of the idea of this operation, apparently, is to send a message to the bad guys and see how they respond.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEO TAPE)

COSTELLO: Our correspondent in Baghdad, Brent Sadler, will have a live report from the Iraqi capital.

That's just ahead in the next half hour of DAYBREAK.

The charges against Michael Jackson become more clear and wouldn't you know it, a little more bizarre. We'll update you on the latest court hearing at 17 minutes past the hour.

The holy month of Ramadan begins today. We'll take you live to Jerusalem at 35 minutes past to talk about fears that the holiday brings for people across the Middle East. At 48 past the hour, we'll educate you about some of the newest ways to treat breast cancer.

And it's getting way ugly in New York as Yankees fans get ready to face the Red Sox tonight.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Your news, money, weather and sports.

It's 5:16 Eastern.

Here's what's all new this morning.

A possible promotion may be in the works for General Ricardo Sanchez, the former head of military operations in Iraq. The "Los Angeles Times" reports Defense Secretary Donald Rumsfeld wants to make Sanchez a four star general, but likely would wait until after the election to do that.

Kobe Bryant's accuser has revised her lawsuit against the NBA star. But this time she's using her real name. A judge ruled last week that she had to identify herself in the sexual assault trial. As part of CNN policy, we do not name alleged victims of sexual assault.

In money news, the deficit for 2004 will hit a record $412.6 billion. That's the bad news. The good news, the White House originally projected the deficit would be $521 billion.

In culture, Eminem Radio is coming your way. The singer has joined with Sirius Satellite Radio to launch an all hip-hop satellite station called Shady 45. The channel hits the air October 28.

In sports, the St. Louis Cardinals used back to back home runs in the eighth inning to get past the Houston Astros. The 6-4 win gives the Cards a 2-0 lead in the National League championship series. Game three Saturday in Houston.

Good morning -- Chad.

MYERS: Good morning, Carol.

They're going to try to get a game in Boston tonight, but I'm not sure that's going to happen. It's going to be very slow to start, I believe, with all this rainfall coming in although, I mean, you know, they always can run between the raindrops.

(WEATHER REPORT)

COSTELLO: Was Michael Jackson's accuser held prisoner at the Neverland Ranch? Prosecutors contend the boy was kept at the ranch and was not allowed to see his mother. They also say that Jackson's people arranged for the family to leave the U.S. for Brazil. Those are just some of the allegations spelled out by the judge in the case.

CNN's Ted Rowlands has more on the court proceedings, which included a small victory for the defense.

(BEGIN VIDEO TAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): Michael Jackson was not in court to hear a judge's ruling against him over contested evidence in his child molestation case. Judge Rodney Melville said no to a motion to suppress evidence taken from Jackson's Neverland Ranch and from a Beverly Hills office of a private investigator. The ruling, a blow to the defense, allows prosecutors to use all but a few of the seized items at trial.

Jackson's attorneys, who had no comment because of the gag order, argued in court the items should have been thrown out because, in their opinion, they were illegally obtained.

Despite Jackson's absence, the hearing attracted a vocal group of both fans and protesters outside the courthouse. Inside, the prosecution accused Jackson's lawyers of withholding evidence they say points toward Jackson's guilt. That includes alleged letters from Jackson to the accuser's family, tapes of phone calls to the family and a stuffed animal allegedly given by Jackson to the young boy. Prosecutors asked the judge to order it turned over. Jackson's attorneys told the judge the charge was outrageous and they didn't have or know the whereabouts of the items.

The judge denied the prosecution motion, saying he trusted that Jackson's attorneys are playing by the rules. The judge also agreed with the defense that the identity of a secret informant in the case must be given to Jackson's attorneys.

(on camera): Judge Melville clearly warned both sides that despite the thousands of pages of discovery in this case, he intends to do everything in his power to hit an established trial date of January 31.

Ted Rowlands, CNN, Santa Maria, California.

(END VIDEO TAPE)

COSTELLO: In other news across America now, it took a Louisiana jury just over 90 minutes to recommend the death penalty for convicted killer Derrick Todd Lee. Lee was found guilty of killing a 22-year- old woman in May of 2002. The woman had been stabbed more than 80 times. DNA evidence has linked Lee to seven murders since 1998.

Robert Blake's defense will likely no longer include the contention that Christian Brando was involved. The judge in the case ruled against the defense's plan to outline a wide ranging conspiracy in the death of Bonnie Lee Bakley. A tape of a heated conversation between Marlon Brando's late son and Bakley will not be played in court. The trial is slated to begin on November 1. Actress Sandra Bullock won a different kind of award. She was awarded nearly $7 million by an Austin, Texas jury. Bullock sued a border over a 10,000 square foot mansion that still hasn't been finished. The project started four years ago. The jury found that the house was poorly built and that the contractors inflated the costs.

What's hot on the Web straight ahead in our Web clicks.

And saying I do takes on a whole new meaning. We'll tell you why these newlyweds are enjoying love and life. It is a heartfelt story you will not want to miss.

And our e-mail Question of the Morning -- are potential voters informed about the issues? And if they're not informed, should they cast a vote anyway? With that controversial question this morning on a controversial story we'll tell you about later, daybreak@cnn.com. That's daybreak@cnn.com.

And you're watching DAYBREAK for a Friday.

(COMMERCIAL BREAK)

MYERS: I'm telling you, I knew that.

COSTELLO: We're talking about pop culture. He actually knew something that I didn't. We're stunned by that this morning, because you do not pay attention.

MYERS: Not really.

COSTELLO: But, if you missed the late night comedy shows, we have a clip for all of, too. Domestic issues were on the mind of would be political commentator Jay Leno last night. In particular, health care.

(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)

JAY LENO, HOST: U.S. officials announced that Saddam Hussein had hernia surgery two weeks ago. Apparently he pulled a groin muscle doubled over laughing when he heard we found no weapons of mass destruction. Anyway, what happened was they said Saddam was feeling some discomfort. So immediately they checked him into the hospital, do the operation and he's made a full recovery. Is that ironic? Bush finally comes up with a health care plan, it's for Saddam Hussein, the only guy, the one guy, no problem, in, out.

(END VIDEO CLIP)

MYERS: You've got to wonder, was he doing heavy lifting over there or what?

COSTELLO: I think he has a little garden out back and he tends his garden, Saddam Hussein.

MYERS: Oh.

COSTELLO: He plants pretty flowers. And it's just kind of ironic how things have changed for him.

We wanted to go through our Web clicks this morning because they're pretty interesting. These are the stories you're clicking onto on cnn.com.

The number one clicked on story is about poor Prince Harry. He's being accused of cheating on an exam in elementary school.

MYERS: In an art music -- I don't know. It was some kind of art test.

COSTELLO: It was an exam, a written exam.

MYERS: Yes, about, I don't know. And now the teacher said that she was forced to do the test for him and it's not real pretty.

COSTELLO: And supposedly she has...

MYERS: There's a lot of name calling going on here.

COSTELLO: But supposedly she has a secret tape of little Prince Harry defending himself, or not defending himself, rather, because on the tape, supposedly you can hear Prince Harry saying it was a tiny, tiny bit; I did about a sentence of it. And he's talking about the exam.

MYERS: But it was all...

COSTELLO: But the rest of the tape is muddled.

MYERS: It was all edited. It was all edited together. It wasn't a nice long tape, so they don't know what it was.

COSTELLO: Poor Prince Harry.

MYERS: He's -- yes.

COSTELLO: Yes. He goes...

MYERS: In the shadow of his older brother, really.

COSTELLO: Yes.

MYERS: I mean his brother is so big, so popular, so gorgeous. I heard these things. Yes. The Beatles...

COSTELLO: You sound like the official (UNINTELLIGIBLE).

MYERS: Did you hear about the Beatles? They're teaming up with Cirque de Soleil.

COSTELLO: I think this is awesome. MYERS: This is going to be the third, I think, maybe even the fourth, the third thing in Vegas with Cirque de Soleil. You've got (UNINTELLIGIBLE), you've got Miss. Dier (ph) and now you're going to have this.

COSTELLO: Yes. And they're going to use the characters from Beatles songs portrayed in the Cirque de Soleil show.

MYERS: Right.

COSTELLO: And this is going to replace Siegfried & Roy in Las Vegas.

MYERS: Right, in that big Mirage theater there so.

COSTELLO: That sounds (UNINTELLIGIBLE).

MYERS: If you have never seen a Cirque de Soleil, you owe it to yourself. I told my mom on her 70th birthday I was taking her to the circus. And I took her to Cirque de Soleil in Orlando. And she was floored.

COSTELLO: I'll bet she was blown away.

MYERS: Yes.

COSTELLO: I just said that to my parents the other day, although I didn't offer to take them.

Chris Rock is going to host the Oscars. That's the third most clicked on story on cnn.com. That's an interesting choice, I think. I mean he's really funny and he's really racy.

MYERS: Yes.

COSTELLO: But the Oscars are just such a conservative broadcast, so maybe he'll spice it up.

MYERS: He might. But I'm just thinking that they looked at him and they said you know what, this guy doesn't step on the line and he won't step on the line for this because we don't want to have to do it in a seven second delay. They still may, I don't know.

COSTELLO: Here's what's all new in the next half hour of DAYBREAK.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We're slapping you around tonight, man. Pedro, who's your daddy?

(END VIDEO CLIP)

COSTELLO: So what has these Yankees fans so fired up? Oh, you know what has them all fired up, the insults in New York are flying faster than Pedro Martinez's best pitch. (COMMERCIAL BREAK)

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Aired October 15, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, U.S. and Iraqi forces launch more air and ground raids on the volatile city of Falluja. They've also set up vehicle checkpoints in and around the insurgent stronghold. U.S. military officials say the operation is to lay the groundwork for an eventual offensive there.

Eastern nations have come up with a plan of incentives and threats for dealing with Iran's nuclear program. Senior officials from the Group of Eight industrial nations will present the proposal today at the U.S. State Department.

Today, Muslims begin their most sacred time of year, the holy month of Ramadan. It's a time of fasting and prayer. And many fear it may also mark a time of increased violence.

Florida's Palm Beach County plans to test its electronic voting machines today. An election official says Tuesday's dry run was postponed because a computer server crashed -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

COSTELLO: Good morning.

MYERS: Did you wear a jacket this morning?

COSTELLO: It's cold outside.

MYERS: Colder in Atlanta than it is in D.C., New York and Boston.

COSTELLO: What's happening?

MYERS: Cold air all the way down to New Orleans.

(WEATHER REPORT)

COSTELLO: Eighteen days until election day in America and the presidential candidates plunge into a duel over domestic issues. On the campaign trail today, Democrat John Kerry begins his day in the battleground state of Iowa and then he heads to Wisconsin, with stops in three cities. He wraps up the day late tonight in Dayton, Ohio. The Democratic presidential candidate is also talking about jobs, health care and the economy. He's hoping to connect with the middle class voters.

More now from CNN's Candy Crowley.

(BEGIN VIDEO TAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): Las Vegas, and all those jabs from the president got John Kerry thinking about Muhammad Ali.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: George Foreman threw punch after punch. And Ali kind of stepped back and said to Foreman during this, to George Foreman, he said, "George, is that all you've got?"

CROWLEY: No knockout punches in the three debates, but the Kerry campaign believes he won all of them on points, though there are questions on that one point about sexual orientation.

KERRY: I think if you were to talk to Dick Cheney's daughter, who is a lesbian, she would tell you that she's being who she was.

CROWLEY: Dick and Lynne Cheney, who rarely talk publicly about their daughter's sexuality, called Kerry's words "out of line, a cheap and tawdry political trick." Something stung because Kerry put out a written statement explaining he was trying to say something positive about how families deal with the issue.

Elizabeth Edwards may not have helped when she weighed in.

ELIZABETH EDWARDS, JOHN EDWARDS' WIFE: It makes me really sad that that's Lynne's response. I think that it indicates a certain degree of shame with respect to her daughter's sexual preferences that I'm certain makes her daughter uncomfortable. And that makes me very sad on a personal level.

CROWLEY: No word from the low key Mary Cheney on how she actually feels.

Meanwhile, back on the trail, John Kerry was at an AARP meeting talking to seniors, people who voted before voting was cool, looking for a knockout punch as the bell for the final round sounds.

KERRY: And so I say to you, Mr. President, after four years of lost jobs, after four years of families losing health coverage, after four years of falling incomes, is that all you've got? After four years of rising gas prices, rising health care costs and squeezed families, is that all you've got?

CROWLEY: The campaign belongs to the nimble now. Kerry's strategists will meet over the weekend to plot the day by day game of political chess, where to send the candidate and where to spend the money. (on camera): And while the candidate's itinerary may change, while they may take money out of one state to put into another, the target remains very stable. As one aide put it, "For the next 18 days, this is all about the great middle class."

Candy Crowley, CNN, Des Moines.

(END VIDEO TAPE)

COSTELLO: And those comments from the Kerry campaign about Dick Cheney's lesbian daughter came up during a town hall meeting on CNN's "PAULA ZAHN NOW" last night. Mary Cheney's sister Liz lashed out at Elizabeth Edwards' statement suggesting the Cheneys were ashamed of their daughter's sexuality.

(BEGIN VIDEO CLIP)

LIZ CHENEY, DICK CHENEY'S DAUGHTER: It has nothing to do with, you know, shame. And I think Mrs. Edwards is also out of line. Mary is one of my heroes and it has nothing to do with being ashamed of Mary. The issue is whether or not Senator Kerry or Senator Edwards, who did the same thing, frankly, in the debate with my father, have the right to exploit her, to bring her up in a situation in which they're clearly trying to make some kind of political point or some kind of political gain. And I think it's actually unprecedented in the history of American presidential politics that you would see that happen.

(END VIDEO CLIP)

COSTELLO: Kerry supporters make note that Mary Cheney has been public about her sexuality and Dick Cheney himself has discussed it openly on the campaign trail.

Now on the road with President Bush, he wakes up in Jacksonville, Oregon this morning and then he's off for a rally in Cedar Rapids, Iowa. That'll happen this afternoon and he'll have another rally in Oshkosh, Wisconsin later tonight. President Bush says the campaign has entered what he calls a sprint to the finish and he's using it to play up his leadership abilities and also to paint Senator Kerry as too liberal to lead.

CNN's John King is traveling with the president.

(BEGIN VIDEO TAPE)

UNIDENTIFIED FEMALE: Ladies and gentlemen, the president of the United States.

JOHN KING, CNN CORRESPONDENT (voice-over): In Nevada, a rousing beginning of the end game. Likability and trust key themes for the president's closing appeal to a divided electorate.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: They know my blunt way of speaking. I get that from mom. They know I sometimes mangle the English language. I get that from dad. Americans also know I tell you exactly what I'm going to do and I keep my word.

KING: Stressing leadership will be another constant in the 19 day sprint. The Bush campaign highlighted Senator Kerry's wait and see approach when asked about Social Security reform in the final debate, suggesting the Democrat lacks the skills and the courage to confront tough issues.

BUSH: The senator's record is 20 years of out of the mainstream votes with -- without many significant reforms or results.

KING: Optimism can matter in a close race. This rare visit with reporters on Air Force One, Senator John McCain in tow, orchestrated to express nonchalance about all this talk of Kerry momentum and a debate series sweep.

BUSH: I feel great about where we are. There's a lot of enthusiasm for my candidacy.

KING: Yet the Bush campaign chairman acknowledged this reality -- the president was in better shape heading into the debates than he is coming out, making a good start to the final push all the more urgent.

SCOTT REED, REPUBLICAN STRATEGIST: And right now the campaign is all about momentum. It looks like the Bush campaign is going to need to get their momentum on the stump as he travels.

KING: Difficult targeting decisions now loom. Two stops in Nevada Thursday. Mr. Bush won last time, but the state leans a bit toward Kerry now.

BUSH: And I want your help.

KING: Then on to Oregon. The Bush campaign has invested heavily to organize here, yet again Senator Kerry now narrowly leads.

REED: It will probably be the last time they'll be heading back out there. They're going to be more focused on the Ohio, Pennsylvania, Florida access and the Midwest states.

KING (on camera): In another example of the electoral college chess under way, the White House says Mr. Bush will now campaign Monday in New Jersey. If nothing else, the Republicans want the Democrats to work harder there. But as of now, no plans for an expensive New York City media buy to contest New Jersey. The Bush- Cheney campaign well aware that every dollar spent in a long shot is a dollar not available to spend in a battleground.

John King, CNN, Central Point, Oregon.

(END VIDEO TAPE)

COSTELLO: Swanky music there, wasn't it? A special cable TV airing of the anti-Bush film "Fahrenheit 911" has now been canceled. In demand Pay-Per-View decided against the airing, which was scheduled for the day before elections. Director Michael Moore says he's now exploring possible legal action against the company.

In the meantime, one member of the Bush team has some harsh words for the controversial director.

Listen closely to this description of Moore.

(BEGIN VIDEO CLIP)

GEORGE BUSH, FORMER PRESIDENT OF THE UNITED STATES:

A total ass. A slime ball. And outrageous in his lies about my family. When I saw him sitting at the Democratic convention with Jimmy Carter and then on the thing with Ron Reagan, I said what in hell, what depths will they go to to dishonor the truth?

(END VIDEO CLIP)

COSTELLO: "Fahrenheit 911" was released on video and DVD last week and I don't think President Bush, Sr. will be watching it.

Another movie with political overtones opens today. It's "Team America: World Police," conceived by the makers of "South Park," it features a team of puppet police fighting terrorism. It's a political parody of the war on terror, which is no laughing matter, I know, but the movie has already caused controversy. Example, the creators say get out the vote campaigns like rapper Sean P. Diddy Combs Vote Or Die campaign, well, they're bogus because they urge people to vote and not be informed.

Actor Sean Penn is taking the comments to heart. Penn says that way of thinking will lead to the "mutilation and exploitation of innocent people." But the film's creators say anyone influenced by their film or by Michael Moore are stupid and they shouldn't be voting anyway.

So, the question this morning -- we were intrigued by that -- the question this morning, is it really the American way to vote when you don't have a clue as to what you're voting for? So the e-mail Question of the Day -- are potential voters informed about the issues? And if they're not, should they cast a ballot? Send us your thoughts. Daybreak@cnn.com. That's daybreak@cnn.com.

A major air and ground assault in Falluja overnight. U.S. Marines and Iraqi forces may be laying the groundwork for an offensive to retake the city from insurgents.

Details from the Pentagon and our senior correspondent Jamie McIntyre.

(BEGIN VIDEO TAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): The ground assault was preceded by another round of punishing air strikes aimed at targets in Fallujah believed to be associated with the terrorist network of Abu Musab Zarqawi. Among the targets, safe houses, illegal checkpoints and weapons storage areas. Then, after nightfall, hundreds of U.S. Marines, Army soldiers and Iraqi special forces moved against other objectives in and around the city, according to a Marine with one of the units.

1ST LT. LYLE GILBERT, 1ST MARINE EXPEDITIONARY UNIT: The troops crossed the line of departure. We had artillery fire -- clipped fire going out. Aircraft have been moving through the area all day. Helicopters providing transport. It's been a pretty uncomfortable time. We have two battalions out there in maneuver right now dealing with the anti-Iraqi forces.

MCINTYRE: Pentagon officials say this is not the final battle for control of Fallujah, which has been under the control of insurgents for months. Sources say the objectives were set after intelligence indicated that terrorists in Fallujah were planning to step up attacks against U.S. forces and the Iraqi people during the Muslim holy month of Ramadan.

GILBERT: It's a significant effort. And when all is said and done, it's going to be a lot less of the anti-Iraqi forces than we're dealing with right now.

MCINTYRE: The U.S. insists the new Iraqi government is calling the shots. Thursday a delegation from Fallujah broke off peace talks with the government over an ultimatum issued by Iraqi Prime Minister Allawi that Zarqawi be handed over.

GILBERT: We've been looking forward to this for a long time.

MCINTYRE: The Marines have been anxious to retake Fallujah ever since their April offensive was aborted in favor of a political settlement that ultimately failed to restore security and left Fallujah a base of operations for the insurgents.

(on camera): While the Pentagon says this is not the big offensive, it could be the beginning of the end, according to U.S. military officials, who say that depends on how much resistance the insurgents can muster. Part of the idea of this operation, apparently, is to send a message to the bad guys and see how they respond.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEO TAPE)

COSTELLO: Our correspondent in Baghdad, Brent Sadler, will have a live report from the Iraqi capital.

That's just ahead in the next half hour of DAYBREAK.

The charges against Michael Jackson become more clear and wouldn't you know it, a little more bizarre. We'll update you on the latest court hearing at 17 minutes past the hour.

The holy month of Ramadan begins today. We'll take you live to Jerusalem at 35 minutes past to talk about fears that the holiday brings for people across the Middle East. At 48 past the hour, we'll educate you about some of the newest ways to treat breast cancer.

And it's getting way ugly in New York as Yankees fans get ready to face the Red Sox tonight.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Your news, money, weather and sports.

It's 5:16 Eastern.

Here's what's all new this morning.

A possible promotion may be in the works for General Ricardo Sanchez, the former head of military operations in Iraq. The "Los Angeles Times" reports Defense Secretary Donald Rumsfeld wants to make Sanchez a four star general, but likely would wait until after the election to do that.

Kobe Bryant's accuser has revised her lawsuit against the NBA star. But this time she's using her real name. A judge ruled last week that she had to identify herself in the sexual assault trial. As part of CNN policy, we do not name alleged victims of sexual assault.

In money news, the deficit for 2004 will hit a record $412.6 billion. That's the bad news. The good news, the White House originally projected the deficit would be $521 billion.

In culture, Eminem Radio is coming your way. The singer has joined with Sirius Satellite Radio to launch an all hip-hop satellite station called Shady 45. The channel hits the air October 28.

In sports, the St. Louis Cardinals used back to back home runs in the eighth inning to get past the Houston Astros. The 6-4 win gives the Cards a 2-0 lead in the National League championship series. Game three Saturday in Houston.

Good morning -- Chad.

MYERS: Good morning, Carol.

They're going to try to get a game in Boston tonight, but I'm not sure that's going to happen. It's going to be very slow to start, I believe, with all this rainfall coming in although, I mean, you know, they always can run between the raindrops.

(WEATHER REPORT)

COSTELLO: Was Michael Jackson's accuser held prisoner at the Neverland Ranch? Prosecutors contend the boy was kept at the ranch and was not allowed to see his mother. They also say that Jackson's people arranged for the family to leave the U.S. for Brazil. Those are just some of the allegations spelled out by the judge in the case.

CNN's Ted Rowlands has more on the court proceedings, which included a small victory for the defense.

(BEGIN VIDEO TAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): Michael Jackson was not in court to hear a judge's ruling against him over contested evidence in his child molestation case. Judge Rodney Melville said no to a motion to suppress evidence taken from Jackson's Neverland Ranch and from a Beverly Hills office of a private investigator. The ruling, a blow to the defense, allows prosecutors to use all but a few of the seized items at trial.

Jackson's attorneys, who had no comment because of the gag order, argued in court the items should have been thrown out because, in their opinion, they were illegally obtained.

Despite Jackson's absence, the hearing attracted a vocal group of both fans and protesters outside the courthouse. Inside, the prosecution accused Jackson's lawyers of withholding evidence they say points toward Jackson's guilt. That includes alleged letters from Jackson to the accuser's family, tapes of phone calls to the family and a stuffed animal allegedly given by Jackson to the young boy. Prosecutors asked the judge to order it turned over. Jackson's attorneys told the judge the charge was outrageous and they didn't have or know the whereabouts of the items.

The judge denied the prosecution motion, saying he trusted that Jackson's attorneys are playing by the rules. The judge also agreed with the defense that the identity of a secret informant in the case must be given to Jackson's attorneys.

(on camera): Judge Melville clearly warned both sides that despite the thousands of pages of discovery in this case, he intends to do everything in his power to hit an established trial date of January 31.

Ted Rowlands, CNN, Santa Maria, California.

(END VIDEO TAPE)

COSTELLO: In other news across America now, it took a Louisiana jury just over 90 minutes to recommend the death penalty for convicted killer Derrick Todd Lee. Lee was found guilty of killing a 22-year- old woman in May of 2002. The woman had been stabbed more than 80 times. DNA evidence has linked Lee to seven murders since 1998.

Robert Blake's defense will likely no longer include the contention that Christian Brando was involved. The judge in the case ruled against the defense's plan to outline a wide ranging conspiracy in the death of Bonnie Lee Bakley. A tape of a heated conversation between Marlon Brando's late son and Bakley will not be played in court. The trial is slated to begin on November 1. Actress Sandra Bullock won a different kind of award. She was awarded nearly $7 million by an Austin, Texas jury. Bullock sued a border over a 10,000 square foot mansion that still hasn't been finished. The project started four years ago. The jury found that the house was poorly built and that the contractors inflated the costs.

What's hot on the Web straight ahead in our Web clicks.

And saying I do takes on a whole new meaning. We'll tell you why these newlyweds are enjoying love and life. It is a heartfelt story you will not want to miss.

And our e-mail Question of the Morning -- are potential voters informed about the issues? And if they're not informed, should they cast a vote anyway? With that controversial question this morning on a controversial story we'll tell you about later, daybreak@cnn.com. That's daybreak@cnn.com.

And you're watching DAYBREAK for a Friday.

(COMMERCIAL BREAK)

MYERS: I'm telling you, I knew that.

COSTELLO: We're talking about pop culture. He actually knew something that I didn't. We're stunned by that this morning, because you do not pay attention.

MYERS: Not really.

COSTELLO: But, if you missed the late night comedy shows, we have a clip for all of, too. Domestic issues were on the mind of would be political commentator Jay Leno last night. In particular, health care.

(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)

JAY LENO, HOST: U.S. officials announced that Saddam Hussein had hernia surgery two weeks ago. Apparently he pulled a groin muscle doubled over laughing when he heard we found no weapons of mass destruction. Anyway, what happened was they said Saddam was feeling some discomfort. So immediately they checked him into the hospital, do the operation and he's made a full recovery. Is that ironic? Bush finally comes up with a health care plan, it's for Saddam Hussein, the only guy, the one guy, no problem, in, out.

(END VIDEO CLIP)

MYERS: You've got to wonder, was he doing heavy lifting over there or what?

COSTELLO: I think he has a little garden out back and he tends his garden, Saddam Hussein.

MYERS: Oh.

COSTELLO: He plants pretty flowers. And it's just kind of ironic how things have changed for him.

We wanted to go through our Web clicks this morning because they're pretty interesting. These are the stories you're clicking onto on cnn.com.

The number one clicked on story is about poor Prince Harry. He's being accused of cheating on an exam in elementary school.

MYERS: In an art music -- I don't know. It was some kind of art test.

COSTELLO: It was an exam, a written exam.

MYERS: Yes, about, I don't know. And now the teacher said that she was forced to do the test for him and it's not real pretty.

COSTELLO: And supposedly she has...

MYERS: There's a lot of name calling going on here.

COSTELLO: But supposedly she has a secret tape of little Prince Harry defending himself, or not defending himself, rather, because on the tape, supposedly you can hear Prince Harry saying it was a tiny, tiny bit; I did about a sentence of it. And he's talking about the exam.

MYERS: But it was all...

COSTELLO: But the rest of the tape is muddled.

MYERS: It was all edited. It was all edited together. It wasn't a nice long tape, so they don't know what it was.

COSTELLO: Poor Prince Harry.

MYERS: He's -- yes.

COSTELLO: Yes. He goes...

MYERS: In the shadow of his older brother, really.

COSTELLO: Yes.

MYERS: I mean his brother is so big, so popular, so gorgeous. I heard these things. Yes. The Beatles...

COSTELLO: You sound like the official (UNINTELLIGIBLE).

MYERS: Did you hear about the Beatles? They're teaming up with Cirque de Soleil.

COSTELLO: I think this is awesome. MYERS: This is going to be the third, I think, maybe even the fourth, the third thing in Vegas with Cirque de Soleil. You've got (UNINTELLIGIBLE), you've got Miss. Dier (ph) and now you're going to have this.

COSTELLO: Yes. And they're going to use the characters from Beatles songs portrayed in the Cirque de Soleil show.

MYERS: Right.

COSTELLO: And this is going to replace Siegfried & Roy in Las Vegas.

MYERS: Right, in that big Mirage theater there so.

COSTELLO: That sounds (UNINTELLIGIBLE).

MYERS: If you have never seen a Cirque de Soleil, you owe it to yourself. I told my mom on her 70th birthday I was taking her to the circus. And I took her to Cirque de Soleil in Orlando. And she was floored.

COSTELLO: I'll bet she was blown away.

MYERS: Yes.

COSTELLO: I just said that to my parents the other day, although I didn't offer to take them.

Chris Rock is going to host the Oscars. That's the third most clicked on story on cnn.com. That's an interesting choice, I think. I mean he's really funny and he's really racy.

MYERS: Yes.

COSTELLO: But the Oscars are just such a conservative broadcast, so maybe he'll spice it up.

MYERS: He might. But I'm just thinking that they looked at him and they said you know what, this guy doesn't step on the line and he won't step on the line for this because we don't want to have to do it in a seven second delay. They still may, I don't know.

COSTELLO: Here's what's all new in the next half hour of DAYBREAK.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We're slapping you around tonight, man. Pedro, who's your daddy?

(END VIDEO CLIP)

COSTELLO: So what has these Yankees fans so fired up? Oh, you know what has them all fired up, the insults in New York are flying faster than Pedro Martinez's best pitch. (COMMERCIAL BREAK)

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